Zions Bancorp Q1 Revenue +7.4% and EPS +38% with 2% Loan Growth
Zions Bancorp’s Q1 revenue rose 7.4% and EPS jumped 38% year-over-year as loans and deposits each grew 2% and net interest spread contraction was limited to 72 basis points. The bank secured Fannie Mae and Freddie Mac lending programs and anticipates declining deposit costs with share buyback potential.
1. Earnings Performance
Zions Bancorp delivered Q1 revenue up 7.4% year-over-year alongside a 38% EPS gain, supported by 2% growth in both loans and deposits. Net interest spread contraction was contained to 72 basis points as variable-rate loan repricing outpaced benchmark changes.
2. Deposit Outlook and Products
Deposit costs are expected to decline through term deposit repricing, while new consumer and small business offerings—such as gold accounts and Business Beyond—are driving balance growth. The bank has successfully brought off-balance-sheet deposits back onto its books at attractive rates.
3. Capital Position and M&A Plans
With a CET1 ratio of 11.5%, Zions is evaluating share repurchases pending board and regulatory approval. The bank also agreed to acquire multifamily agency programs and add Fannie Mae and Freddie Mac lending capabilities to boost its commercial real estate platform.
4. Capital Markets and Credit Quality
The Capital Markets division saw robust fee income growth from syndications, interest rate hedging and a new commodity hedging practice, with real estate capital markets expected to rebound. Credit quality remains strong, with net charge-offs at 0.03%, classified loans down 19% and a healthy pipeline across small business, middle market and corporate banking.